Aurelian Resources Inc.
TSX : ARU

Aurelian Resources Inc.

June 06, 2007 09:10 ET

Aurelian Intersects 72.83 Metres Grading 7.63 g/t Gold and 78.00 Metres Grading 5.26 g/t Gold in Drilling at FDN

TORONTO, ONTARIO--(Marketwire - June 6, 2007) - Aurelian Resources Inc. (TSX:ARU) today announced results from 11 additional drill holes from the buried epithermal gold-silver discovery at Fruta Del Norte (FDN) on its wholly-owned Condor Project in south-eastern Ecuador. These include 72.83 metres grading 7.63 g/t gold ("Au") and 15.3 g/t silver ("Ag") in CP-07-110 and 78.00 metres grading 5.26 g/t Au and 5.6 g/t Ag in CP-07-112. Both drill holes have added significant mineralisation, bringing the deposit closer to the surface on sections 9583700N and 9583500N respectively. In the northern portion of the deposit on section 9583800N, infill hole CP-07-119 intercepted 82.90 metres grading 4.11 g/t Au and 7.8 g/t Ag.

On section 9583700 N, scissor hole CP-07-114 intersected 77.70 metres grading 6.26 g/t Au and 15.3 g/t Ag and further down in the same hole there is an intercept of 190.85 metres grading 6.09 g/t Au and 7.5 g/t Ag.

At the south end of the FDN system, drill hole CP-07-116A intersected 147.70 metres grading 2.37 g/t Au and 6.6 g/t Ag followed by 89.70 metres grading 3.27 g/t Au and 12.6 g/t Ag, in an area where the mineralisation has spread over a horizontal width of approximately 300 metres.

"FDN continues to expand based on excellent results from our infill and step-out drilling," says Patrick F.N. Anderson, Aurelian's President and CEO. "Work on our Condor project carries on unabated and Aurelian has become the largest employer in the local area, with more than 200 personnel on-site. We expect the environment in Ecuador to continue to be favourable for business as the government develops and then finalizes its mining policy and laws. We anticipate any new policy or laws to be based on the framework the Ministry of Energy and Mines released publicly in March - no nationalization, possible introduction of a royalty similar to those seen in Chile and Peru and respect for the environment and local communities. Aurelian is committed to working with the government and people of Ecuador to achieve a modern, sustainable mining industry, which will play an important role in the future growth of the country."

Mr. Anderson adds, "We are within several weeks of completing the drilling to be included in our 43-101 resource, which should result in release of the report summary in mid-summer along with metallurgical studies."

A table containing more complete intercepts from the 11 drill holes is listed below while maps, cross sections, photos and full gold and silver assay data from this and previous press releases may be viewed at www.aurelian.ca.

FDN Results

Results are summarized in the tables below. Intervals containing high grade assays have also been re-calculated using a top cut of 105 g/t gold.



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Uncut data
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Cross Drill hole From To Interval
section (metres) (metres) (metres) Au g/t Ag g/t
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9582600N CP-07-108 No significant assays
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CP-07-116A 405.50 553.20 147.70 2.37 6.6
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including 453.65 472.40 18.75 4.19 5.4
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9582700N CP-07-116A 560.00 649.70 89.70 3.27 12.6
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including 593.20 607.60 14.40 10.54 31.9
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which includes 593.20 593.50 0.30 304.00 688.0
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CP-07-109 604.10 656.62 52.52 2.18 1.3
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9582800N including 617.15 626.00 8.85 7.56 4.2
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CP-07-109 663.34 693.00 29.66 1.03 2.0
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CP-07-109 740.20 743.20 3.00 4.96 5.0
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CP-07-118 317.79 403.00 85.21 2.94 5.5
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including 338.10 360.60 22.50 8.60 6.5
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which includes 359.00 359.57 0.57 199.50 54.5
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9583000N CP-07-118 451.00 557.00 106.00 1.38 7.8
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including 472.00 474.00 2.00 33.50 47.6
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CP-07-118 618.00 646.91 28.91 1.80 8.9
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including 629.50 630.50 1.00 34.10 113.0
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9583400N CP-07-113 289.00 431.50 142.50 4.70 10.4
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including 290.35 317.52 27.17 9.84 11.4
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CP-07-112 164.30 242.30 78.00 5.26 5.6
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9583500N including 164.30 216.00 51.70 7.26 7.2
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CP-07-115 141.00 169.60 28.60 1.10 5.4
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CP-07-110 112.35 185.18 72.83 7.63 15.3
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including 151.57 184.18 32.61 14.33 21.6
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CP-07-111 228.13 239.00 10.87 1.43 4.9
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9583700N CP-07-114 144.00 221.70 77.70 6.26 15.3
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including 158.80 201.60 42.80 9.69 17.6
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CP-07-114 244.50 435.35 190.85 6.09 7.5
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including 288.96 345.73 56.77 10.73 10.6
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and including 397.90 425.90 28.00 10.18 12.2
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9583800N CP-07-119 156.70 239.60 82.90 4.11 7.8
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including 202.65 209.80 7.15 17.54 17.0
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Note: intervals are calculated using a lower cut of 0.5 g/t Au and no top
cut, they include a maximum of 5 metres internal waste.
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Intervals with a top cut of 105g/t Au
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Cross Drill hole From To Interval
section (metres) (metres) (metres) Au g/t Ag g/t
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9582700N CP-07-116A 560.00 649.70 89.70 2.61 12.57
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9583000N CP-07-118 317.79 403.00 85.21 2.31 5.52
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Note: intervals are calculated using a lower cut of 0.5 g/t Au and a 105
g/t Au top cut, they include a maximum of five metres internal waste.
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CP-07-108 (azimuth 090/dip -76) was drilled on section 9582600N to test the down faulted western block to the west of CP-07-99 (PR May 2, 2007). The hole did not intersect significant mineralisation.

On section 9582700N, CP-07-116A (Azimuth 91/dip -65) intersected a broad zone of epithermal stockwork veining and narrow veins returning best intercepts of 147.70 metres grading 2.37 g/t Au and 6.6 g/t Ag and 89.70 metres grading 3.27 g/t Au and 12.6 g/t Ag. The hole is part of a five-hole fence drilled to test the southern part of the system. The results and geological core logging indicate that the system is broadening to the south and is up to 300 metres wide on this section.

Drill hole CP-07-109 (azimuth 90/dip - 63) was drilled on section 9582800N and tested the area west and down dip of previously reported holes CP-06-90 and -94 (PR January 31, 2007 / March 27, 2007). The hole intersected dispersed epithermal stockwork veining between approximately 600 metres and 700 metres down hole, with the best intersection assaying 52.52 metres at 2.18 g/t Au and 1.3 g/t Ag, including 8.85 metres at 7.56 g/t Au and 4.2 g/t Ag.

An eastward step-out hole on 9583000N (CP-07-118; azimuth 089/dip -60) successfully intersected several broad zones of epithermal stockwork veining, including an intercept of 22.50 metres assaying 8.60 g/t Au and 6.5 g/t Ag within a wider interval of 85.21 metres assaying 2.94 g/t Au and 5.5 g/t Ag. This hole confirms the eastward broadening of the FDN mineralisation to the south, beginning at around 9583000N.

CP-07-113 (azimuth 0269/dip -60) is a second scissor hole on section 9583400N and intersected a broad zone of epithermal brecciation and veining with visible gold. The hole assayed 142.50 metres at 4.70 g/t Au and 10.4 g/t Ag, including 27.17 metres at 9.84 g/t Au and 11.4 g/t Ag. The hole went through a lower grade zone on section 9583400N but confirms the geometry and intensity of mineralisation previously intersected on this section.

Drill hole CP-07-112 (azimuth 090/dip -52) was drilled to test the extent of mineralisation on section 9583500N, up-dip of CP-06-60 (PR July 7, 2006). The drill hole intersected approximately 80 metres of epithermal stockwork veining, adding additional cross-sectional area to the eastern part of the FDN block on this section. The best interval in CP-07-112 assayed 78.00 metres at 5.26 g/t Au and 5.6 g/t Ag.

Also on section 9583500N, CP-07-115 (azimuth 090/dip -52) tested the FDN system further up-dip of CP-07-112. The hole intersected a zone of epithermal stockwork veining assaying 28.60 metres at 1.10 g/t Au and 5.4 g/t Ag. This hole and other recently drilled in a similar location on other sections show that a small internal fault has stepped the mineralisation down to the west by approximately 50 metres. This has added a significant volume of mineralisation.

Several holes were drilled on section 9583700N, including two shallower holes (CP-07-110 and -111) to test the area eastward and up-dip of CP-06-65 and -67 (PR September 14, 2006 / October 18, 2006). Hole CP-07-110 (azimuth 090/dip -59) intersected epithermal breccia, stockwork and veining with the best intercept assaying 72.83 metres at 7.63 g/t Au and 15.3 g/t Ag. Hole CP-07-111 (azimuth 089/dip -50) was drilled from the same drill pad but at a shallower angle. This hole also intersected epithermal stockwork and veining, but with weaker gold mineralisation. The best intercept assayed 10.87 metres at 1.43 g/t Au and 4.9 g/t Ag.

Also on section 9583700N, hole CP-07-114 (azimuth 270/dip -80) was drilled as a scissor hole to test the mineralisation at depth. Drilled down dip, the hole encountered a very intense zone of epithermal brecciation, stockwork and veining, with significant intervals including 77.70 metres grading 6.26 g/t Au and 15.3 g/t Ag followed by 190.85 metres grading 6.09 g/t Au and 7.5 g/t Ag. As this was a scissor hole, the intercept does not represent a true width, although it does demonstrate the continuity of mineralisation over 250 vertical metres on this section.

Drill hole CP-07-119 (azimuth 091/dip -55) was an infill hole on section 9583800N between holes CP-06-69 and -75 (PR October 18, 2006 / December 15, 2006). The hole intersected a broad zone of epithermal brecciation and veining, with the best intercept assaying 82.90 metres at 4.11 g/t Au and 7.8 g/t Ag.

Results from 64 diamond drill holes have been released for the FDN prospect to date. Further drill results will be released as analytical data are received, validated and compiled.

The FDN target is interpreted to be an intermediate sulphidation epithermal gold-silver system. The deposit is buried by dominantly post-mineralisation basin infill sediments (Suarez Formation) of Jurassic age within a pull-apart basin. The hydrothermal system is characterized by a combination of multiphase quartz-carbonate-sulphide stock work veining and hydrothermal brecciation within intensely silicified andesitic volcanic rocks that underlie the basin. In the southern part of FDN (south of 9583500N), the system is interpreted to dip moderately to steeply westward with a vertical structure bounding it to the east, and is cut by a steep east-dipping fault to the west. At the north end of the system (including and north of section 9583500N) the vein orientations and correlation of mineralisation between drill holes indicates that the system is vertical. South of 9583000N the system broadens into a zone of epithermal stockwork and larger veins that is up to 300 metres in horizontal width. In this part of the system the main upflow zone is interpreted to have moved from west to east.

Drilling at the FDN deposit has outlined a mineralized envelope that is traceable continuously for over 1200 metres along strike, exceeds 100 metres in width through the central and southern portions, dips moderately westward through to vertical and has a vertical extent of over 250 metres. Drill holes intersect this envelope at an angle and therefore drill hole intercept widths reported in this press release are not true widths.

Samples consist of half NQ, NTW and BTW-size diamond core that are split by diamond saw on site, prepared at the ALS Chemex laboratory in Quito, and assayed by 50g fire assay with an AAS or gravimetric finish at the ALS Chemex Lima Laboratory. The quality assurance-quality control (QA-QC) program of Aurelian includes the insertion of certified standards of known gold content every 20 samples, blanks at least every 20 samples and field or lab duplicates every 20 samples. Samples from significant drill intercepts are sent to two additional laboratories to verify gold and silver analyses. Metallic screen fire analyses for Au are also regularly run as additional QA-QC checks. The remaining half core is retained for verification and reference purposes.

Stephen Leary (MAusIMM), Aurelian's Exploration Manager, is acting as Qualified Person in compliance with National Instrument 43-101 with respect to this release. He has reviewed the contents for accuracy.

About Aurelian:

Aurelian Resources Inc. is a publicly-listed (TSX:ARU) resource company engaged in the business of exploring, discovering and developing mineral wealth in Ecuador. The Fruta del Norte discovery lies at the heart of the Condor Project properties, located in south-eastern Ecuador and consisting of 38 mining concessions totaling approximately 95,000 hectares.

Forward Looking Statement:

Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralisation and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

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